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Gold output extends biggest drop in a decade

Labour strife, high costs and policy uncertainty have crimped gold output.

South African gold production shrank for an 18th straight month in March, extending the longest run of contractions since the financial crisis.

Output of the precious metal dropped 18% from a year earlier compared with a 21% decline in February, Pretoria-based Statistics South Africa said in a statement Thursday. Production contracted for 29 months through January 2009.

Key insights

South Africa used to be the world’s top producer of the metal but deeper ore bodies, labour strife, high costs and policy uncertainty have crimped output. A strike by members of the Association of Mineworkers and Construction Union that started in November and ended in mid-April has slashed output at the South African operations of Sibanye Gold, the biggest producer of the metal from local mines. Total mining output declined 1.1% from a year earlier, compared with a revised contraction of 8.1% in February. The country is the world’s biggest platinum producer. Output of platinum-group metals, which include palladium, fell for the first time in seven months, shrinking 0.5%.

 
© 2019 Bloomberg L.P
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